I would like to modify an indicator that I already have that draws the trend lines joining the last 2 fractals of Bill Williams resistance (those that are above the current price) and the last 2 supports (those that are below), with the only condition that looking from right to left the second fractal, either support or resistance, must be the next fractal below the first.
Attached is the indicator called Demark_Trendline_Trader, to which the SL and TP lines would have to be corrected according to the attached rules and the alarm should be modified to warn at the opening of the second candle that it has broken the trend line.
The lines that are drawn should join the wicks, not the body of the candles.
Line that joins the last 2 supporting fractals Line that joins the last 2 supporting fractals resistance, the second fractal is the first on the right to the left which is below is the first on the right to the left which is above the initial fractal
the initial fractal
Stop Loss: in the indicator provided are the horizontal red and green lines. It is about modifying them so that they will be located, in a Buy, the SL would be 1 pip below the wick of the last fractal support, and in a Sell, the other way around.
SL in a Buy SL in a Sell
Take Profit: located, in a Buy, by measuring the distance from the highest starting point of the bearish line (the highest resistance fractal of the 2 that we use to draw the trend line) with the lowest lower price (the most supportive fractal, the one lower). The TP is the distance, measured as indicated, from the first candle that breaks the trend line and whose close price is below that trend line. At that point it will draw a green horizontal line, color SeaGreen. In a Sell, backwards, and the trend line would be Tomato color.
TP in a Buy TP in a Sell
The indicator must calculate the Risk / Benefit Ratio (TP / SL) and indicate it on the graph.
Alarms: they are established when the trend line breaks in the indicator provided. They must be modified to warn at the opening of the second candle which has broken the trend line.
